Many businesses still lack a proper understanding of the Carbon Border Adjustment Mechanism (CBAM), leading to unnecessary concern or ineffective responses when exporting goods to the EU. At a recent talk organized by Cong Thuong (Industry and Trade) magazine, Nguyen Hong Loan, an expert from the technical support project for assessing CBAM’s impact, said that some businesses, particularly in the rice and plastics sectors, mistakenly believe they are already subject to CBAM. Loan, who directly assists businesses in responding to this mechanism, stressed the need for a clearer understanding. As part of its initiative to become the first continent to achieve carbon neutrality, the EU introduced CBAM to ensure fair trade by imposing similar costs on imports as on local exports, including emission costs. CBAM’s implementation will occur in three phases. In the transition phase, from October 1, 2023 to December 2025, EU importers are not yet required to pay a carbon tax but must report the volume of carbon emissions related to their imports. The operational phase begins in January 2026 and runs until 2034. During this period, EU importers will need to purchase CBAM credits equivalent to the emissions generated by the goods they import from countries with […]
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